The U.S. government has announced a significant action against transnational cybercriminal networks, moving to seize 127,271 Bitcoin (BTC), valued at approximately $14 billion, linked to an extensive online investment scam. This operation is tied to Chen Zhi, a 38-year-old Chinese émigré, and his Cambodia-based Prince Group Transnational Criminal Organization (TCO). The action, revealed by the U.S. Treasury’s Office of Foreign Assets Control (OFAC) and Financial Crimes Enforcement Network (FinCEN), is part of a broader initiative to combat cybercrime targeting U.S. and allied citizens.

Chen Zhi, also known as “Vincent Chen,” allegedly built a multi-billion-dollar empire in Cambodia through fraudulent investment schemes, notoriously known as “pig butchering” scams. These schemes involve cultivating victims over several months, building trust, and then persuading them to deposit funds into deceptive investment platforms. According to an indictment filed in the Eastern District of New York, Chen and his co-conspirators lured victims globally using social media and messaging apps, operating out of heavily guarded “scam compounds” in Cambodia where workers were coerced into running the schemes.

The criminal enterprise reportedly laundered billions in illicit proceeds through a complex web of shell companies, real estate investments, gambling ventures, sextortion, and large-scale Bitcoin mining facilities located in Asia and the United States. Prosecutors formally alleged that Chen’s network moved and concealed at least 127,000 Bitcoin, valued at billions of dollars, across numerous digital wallets. While some speculate these 127,271 BTC were stolen in 2020 and linked to the LuBian mining operation, the U.S. Justice Department confirmed the funds are reportedly in U.S. possession, though details on their recovery and transfer were not provided. If these funds are indeed added to the U.S. holdings, the government’s total Bitcoin would reach 325,283 BTC, worth over $37 billion.

The indictment further exposed a foundation of corruption and violence within the Prince Group TCO, detailing bribes to foreign officials, threats, and physical abuse used to maintain control over workers and protect the organization. Chen Zhi faces charges of conspiracy to commit wire fraud and conspiracy to launder money, both carrying potential decades-long prison sentences. Prosecutors are also seeking the forfeiture of all associated Bitcoin, crypto holdings, and other assets tied to these alleged crimes.

In a parallel effort, the United Kingdom’s Foreign, Commonwealth, and Development Office (FCDO) coordinated sanctions against Chen Zhi, Prince Holding Group, and key associates. Additionally, the U.S. Treasury finalized a rule severing Huione Group, a Cambodia-based financial services conglomerate, from the U.S. banking system. Huione Group is accused of laundering billions in virtual currency stolen by DPRK-linked hackers and Southeast Asia-based scam networks, including at least $300 million in other cybercrime proceeds. OFAC’s sanctions target 146 entities and individuals connected to Prince Group TCO, encompassing shell companies, real estate firms, banks, and operators of luxury resorts. This includes facilitators like Palau-based Rose Wang, who assisted Chen in establishing commercial operations abroad, such as a 99-year lease for a luxury resort on Ngerbelas Island. These coordinated U.S.-U.K. actions follow previous Treasury and FinCEN efforts against cybercriminals in Southeast Asia, including sanctions against Burmese and Cambodian operators and DPRK-linked money laundering networks.